An Architectural Tour
As technological complexity increases and business processes evolve,
insurers need to pay more attention to modern systems architecture.
Given the need to facili- tate business processes in a highly competitive industry, insurance tech- nologists could be forgiven for favoring tactical concerns over
strategic ones. Yet, given the rapid changes
sweeping through the information technology landscape, a broad view of how
systems, application and business capabilities work best together is now well
warranted. Accordingly, Insurance Networking
News asked Deb Smallwood, founder of
SMA Strategy Meets Action, a Boston-based strategic advisory firm, about the
findings from their current research project “Modern Architecture.”
INN: What are the tenets to modern
application architecture?
DS: The purpose of a modern architecture is to create a framework showing
how all the application components
needed to support required business
capabilities fit together. This framework
serves as the blueprint for making IT
investments and a guide for setting IT
priorities.
The modern architecture goes be-
yond the policy administration and
claims systems. It provides an integrated
application foundation for features and
function across all departments, all
products, and all lines. It creates an en-
vironment for sharing and reuse of ad-
vanced application components, en-
gines, rules and tools such as geospatial
mapping and cat models across the en-
terprise. It also defines the requirements
for various graphical user interfaces and
customer communication and content
tools such as voice, document manage-
ment, scanning, and imaging. It points
out where data services such as those
used to provide business intelligence
and data tools like those used for ensur-
ing data quality are needed.
INN: What is the relationship between strategy and capability?
DS: This is an important question and one
insures should spend time thinking about.
Step one is to appreciate the correlation
between specific business and technology
capabilities that will enable the business to
achieve its goals and expected outcomes.
Linkage between the business strategy and
functional capabilities required to achieve
that strategy is essential in today’s marketplace. The enabler for this linkage is the
technology.
Imagine a business processing environment where workflows cut across the
various departments, where external partners and channels are incorporated into
the workflows, where processing is integrated across different systems, and where
all players are talking to each other and
using high-quality common data. Here,
business processes and systems are easy to
use and easy to change. This integrated
world is the foundation for a responsive,
dynamic business. At the core of this vision, where business processes connect
throughout the organization as all stakeholders share the same information, is a
modern architecture that enables integration for all applications, workflows, tools,
services and data.
INN: What are commons mistakes
carriers make when modernizing?
DS: The most common mistake insures
make is thinking that with the implementation of a new, up-to-date policy
or claims system, the modern architecture is complete. In reality, it is a start
and provides a solid foundation, but
there are many more components required to realize the full potential that a
modern architecture can deliver to the
enterprise.
The other mistake insurers commonly make is not recognizing the
complexity of integration and failing to
have a game plan that successfully ad-dresses it. Insurers often find themselves
in a position of only adding to their already tangled hairball of systems and
ending up with point-to-point integration that yields a very complicated, inflexible environment.
The framework for a modern architecture, coupled with a clear picture of the
current functional and IT environment,
makes a great tool for both the business
and IT to have a conversation around. It
Insurers often find themselves in a position
of only adding to their already tangled hairball
of systems and ending up with point-to-point
integration that yields a very complicated,
inflexible environment.
